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tv   FBN AM  FOX Business  January 4, 2016 5:00am-6:01am EST

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>> nicole: breaking news this morning. start a brutral morning of selloff. looking at the asian markets, we will certainly see down arrows. 7% to the downside. good morning, i'm nicole petallides. we welcome back lauren simonetti . >> lauren: good morning. dow has been down 100 points overnight. s&p is off 30 and a half points and nasdaq falling by 37 points,
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nicole. >> nicole: saudi arabia cuts diplomatic ties to iran after protestors set embassy in tehran on fire. >> lauren: president obama plans to use oval office powers but candidates come out lout on the president's plan. welcome to fbn:am, first look on what is moving in today's market, first day of trading day in 201 #. let's take a look at what to expect. day of trading at etx capital joins us now. good morning to you, joe. >> good morning. i think the key here is china manufacturing figures would choose that china
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manufacturing contracted six days in a row. the economy was not quite as strong as we were led in december. >> nicole: joe, i wanted to ask you, there was sort of a disconnect. a couple of things i'm hearing this morning. the services number there was actually better than expected so there was a piece of economic news and another piece of information from experts it's really the saudi arabia-iran story that's putting a damper on things, not necessarily the control in china, what do you make of it? >> the service reflects the change in the economy. it's shifting to be a consumer rather than manufacturer. the pace is worrying and it's
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about global economy. iran and saudi deal is putting pressure on oil and shows political tension around and could flair up really quick. that would slow down. from the european point of view are both stories that cause concern and people are just not really sure where to put their money on the first day of the year so they are being cautious. it's true. last year if you put your money in certain stocks, you did okay, but we were down for the most part if you look at dow and s&p. i want to go back to the story. you're not seeing too much. you have saudi arabia and iran, the biggest opec producers. why aren't we seeing more of a tightening right now?
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>> shows that this is going to continue. people are looking for the next meeting in june and if the tensions continue i don't see a deal where opec is going to cut oil production. that's why we are seeing weakness in the oil market. >> nicole: some of the stories remain the same, you're talking about the weakness in oil, we are talking about the weakness in china, where is the bright spot for 2016. people have to park their money somewhere, where should they put it? >> i think that shows progress in ability. and also likewise with the uk. therefore people can continue to invest. so i think the bright spot, germany, uk and u.s. economies,
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you're going to see volatility. the u.s. and uk. >> nicole: we are closely watching the stock market as steep selloff in asia. looking like this. close to 300. we are still seeing down arrows here across the board in the u.s. s&p futures down 30. and nasdaq futures down 76. all of which are down about one and a half percent. latest on the meltdown that we have seen in the asian markets, we go straight to reporter live in beijing, good morning, rachel >> now comes in the first day of new circuit brakers here in china, now trading was halted in shanghai this 1:30 p.m. local
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time. investors got panic after they heard latest data after hearing manufacturing contracted for the fifth straight in china. more bad news about the chinese economy. no surprise the asian markets followed with hong kong hang seng. nikkei falling 3% and kospi falling more than 2%. not the way investors hoping to start out the new year. >> nicole: thank you so much. >> lauren: that decision was made after protestors attacked the saudi embassy in iran's capital. demonstrators are angry over saudi arabia execution of a prominent cleric. >> executing a shia cleric is
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going to arise to more problems. >> i don't think it was a smart decision to make and i will criticize publicly for that. >> lauren: including the peace talks and iran nuclear deal. issuing a statement that says this, quote, we will continue to urge leaders across the region to take affirmative steps to calm tension. iran says saudi arabia is using embassy attack as an excuse to fuel the tensions. >> nicole: breaking news this morning, major earthquake in india leaves six people and more than 100 injured. magnitude6.7. tremors were felt in bangladesh as well. the move which strengthen
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background checks required for gun, republicans strongly opposing the plan. >> right now they have plenty rules and regulations. >> he walks around as if he's a king, dictator. if he wants to make changes, go to congress and make sure they're necessary. another illegal executive action that will be rejected by the court. it's not a surprise that the government doesn't believe that it's not working anymore after president uses executive authority. >> he has been lawless in the use of executive orders whether they're around immigration or whether those executive orders are around gun control. >> lauren: that was the republican side, democratic socialist senator supports the
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president's approach. >> there is a wide consensus overwhelming majority of the american people believe we should expand and strengthen the background check so that people who should not have guns ie criminals or people with mental issues, mental health issues should not own guns. >> lauren: president plans to hold a town hall meeting thursday in virginia to discuss reducing gun violence. >> nicole: looking at u.s. stock market futures, dow futures right now 267. kicking off the new year with down arrows. s&p futures down 30. investors will have a full of economic report, including closely job job's report and that will be on friday. the index hit a six-year low in november. we will get december autosales
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tomorrow. cheap gasoline, we will see if that enthusiasm continues last month. employment report on private sector hiring and the minutes from the federal reserve interest rate meeting, remember, where they raised rates in the very first time in almost a decade. we will get the job claims on thursday and job report. that sets the stage for friday's job report. 200,000 jobs with employment rate holding steady at 5%. >> lauren: that's 200,000 plus jobs less than year. hollywood's banner year, mega hit such as star wars put total ticket sale to a record last year. many films struggle to find an audience. you have chinas tech center, harsher environment start-ups
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with rivals. tesla delivered the most in a quarter by a wide margin and 75% more than last year. >> nicole: well, coming up a plunge in the chinas stock market and plunging here at home. let's check what is going on. we are seeing down arrows. s&p losing almost 30 points right now. we will have complete coverage of the markets including live reports from beijing, market reaction from europe. we've got you covered. you're watching fbn:am, first look at morning markets and breaking news. ♪ ♪
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>> nicole: we are seeing a selloff. shanghai composite closed 7%. stocks were halted. nikkei down. weak khaoeuba data as well as tensions in the middle east. >> lauren: awful start to the year. in europe awful start to the year. 125 points. cac is down 106 and dax 361, that's a hangover. >> nicole: we are seeing the dow 260 points. dow futures and s&p futures and nasdaq one and a half percent. >> lauren: let's look at key commodities. oil prices. 37.34. gold 1,072. >> nicole: first trading day of
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2016. nfl regular season wrapped up yesterday, playoff matchups are set. carolina panthers beat tampa bay buccaneers. secured home field advantage for the first time in history. top seed in the afc playoffs is denver. third quarter led the broncos 27-20 win over san diego. the new york jets, not good, not going to the playoffs thanks to their former coach. needed a win to make the playoffs and they didn't get it, intercepted on three possessions. come on, bill. miami dolphins beat new england 20-10 and cost patriots top seed.
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second miss in a row to taerpb top playoff seed by winning. >> lauren: all right, coming off pressure u.s. stock market futures. dow selling off by 268 points on first trading day of the new year. whether he have a complete wrap-up for you including live reports from beijing. there are also analysis of what to expect in today's trading. plus president obama plans to use oval office powers to tighten gun laws, but gop coming out loudly against the plan. >> i don't like it, i don't like anything having to do with changing the second amendment. >> lauren: oil prices, saudi arabia cut diplomatic ties with iran. we will have the latest on the tensed situation.
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you're watching fbn:am, first look at morning markets and breaking news. stay with us. ♪
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she had a beautiful baby girl. we are under pressure. >> lauren: we certainly are. also not helping stocks oil prices. saudi arabia cut diplomatic ties to iran after protestors set fire in embassy in tehran. they are trading to the upside. 37.40 is your quote right now. >> nicole: president obama plans to use oval office powers to tighten control gun laws, gop presidential candidates come out loudly. we will have the reaction on that. good morning, fbn:am, first look at what's moving in today's markets, latest breaking news and what to expect on the day ahead. >> lauren: closely tracking stock market action after that steep selloff that started in asia. right now u.s. stock market futures looking pretty terrible on the first trading day of the
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year. dow down 270 points. that started in asia. business reporter rachel live in beijing. good morning to kwrorbgs, rachel >> good morning. shanghai composite down 7%. worst start of the year for chinese shares ever. comes after latest data shows manufacturing activity contracted for the fifth straight month. not good news about china's economy again. the rest of the asian markets did follow suit. it doesn't have the circuit breakers in place. it was down more than 2 and a half percent and kospi more than 2%. terrible, terrible start to the trading year here in asia.
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>> rachel, thank you so much. >> nicole: translates to the europe and the states, we are seeing weakness in the miners and ftse down 2% and so is cac, worst of the bunch germany dax down 3 and a half percent this morning. >> lauren: look at that. we are seeing strength in oil prices after two pwru -- brutal years for crude. >> nicole: we have market analysts in london, joins us from telephone with his thoughts. no secret that this number out of china, manufacturing part of it was weak. what do you make of this trading week ahead? is this the knee-jerk reaction?
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>> we seemed to be replicating the template which is fears and worries about chinese. it's not chinese government and arguably more reliable and indicator of the underlying economy. does highlight how much of a fear factor there is and the fact that chinese regulators utilized for the first time to suspend trading, finishing an hour and a half early in a day and down 7% is a worrying template for the year ahead. >> lauren: china slowdown was a 2015 story and possibly 2016 story. it looks like we are seeing that this year as well with what's going on in saudi arabia and iran. what's your take on how the situation will affect global
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equities? >> historically relationship has been frosty at best. arguably not too much of a surprise. in the shorpl is very disappointing and as far as opec nations are concerned, major question mark in ability of opec and keep oil prices subjected considering we are talking about the largest and fourth largest producers in the world. we have seen a spike in both crude today. >> nicole: thank you so much for joining us. market analysts in ig in london. >> lauren: big jump in oil prices, that comes after saudi arabia says it's cutting diplomatic ties with iran. demonstrators are angry over saudi arabia execution of prominent gi khrergy as well as six others.
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u.s. presidential candidate weighing in on the issue. >> pe cuting a cleric -- >> i don't think it was a smart decision to make and i will criticize them publicly for that . john kerby issuing a statement. meanwhile iran says saudi arabia is using the embassy attack as an excuse to fuel the tension. >> nicole: president obama to use executive action to tighten gun laws. republicans white house hopeful strongly opposing this plan. >> right now they have plenty of rules and regulations and they should be looking at mental health. we should build institutions for
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sickos. >> go to congress and convince the congress that they're necessary but this is going to be another illegal executive action which i'm sure will be rejected by the court. >> it's not a surprise that people believe that the government is working on their behalf anymore when you have a president that recklessly uses authority that the constitution doesn't justify him. >> whether executive orders are around immigration or gun control. >> nicole: fiorina, bush and chris christie and trump coming out about illegal executive orders. bernie sanders supports the president's approach. >> there is a wide consensus, overwhelming majority of the american people believe we should expand and strengthen the instant background check so that people who should not have guns
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ie criminals or people with mental issues, mental health issues should not own guns. >> nicole: the president plans to hold a town hall meeting in virginia to discuss reducing gun violence. lawyer lawyer coming up we will focusing on selloff. dow down 269 points, s&p down 29 and three quarters. so we are seeing like i said this is a hangover on the first trading of the year. facebook ceo mark zuckerberg wants to build an iron butler. you're watching fbn:am, first look at morning markets and breaking news.
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>> lauren: good morning, everybody, let's get you caught up on global market action overnight. in asia major selloff. shanghai down almost 7 per. nikkei down 3%. >> nicole: we are seeing europe taking that cue right out of asia. cac down two and a half percent. germany, dax, worse of the bunch, down 3.7%. accelerating to the downside in the ten-15 minutes. >> lauren: bleeding continues here in the u.s. s&p futures down 31.
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nasdaq 81. each of the major averages selling off one and a half percent. >> nicole: they were hoping for up arrows for the 401k's and ira's. oil is up more than 30 kepbts and gold 10.72. up 12 bucks. >> lauren: here is how the dollar is trading. you can see how the other currency are. now, that he's a father, facebook ceo mark zuckerberg could sure use help around the house. this is what he posted online. my personal challenge for 2016 is to build a simple ai to run my home and help me with my work. zuckerberg and his wife had
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their first child in november, a daughter max chan zuckerberg, reading two books a month on top of his ceo life and learning mandarin. >> nicole: everybody gets a robot. coming up on stock selloff this morning. we saw stocks halted in china, down 7%. checking u.s. stock market futures, dow just over 2% in 2015. 268 points for dow futures. s&p futures down 30. right now we will have a full market wrap-up for you. oil prices spike after saudi arabia cuts diplomatic ties with iran. we will have the latest on that very tense situation in the middle east. keep it right here, fbn:am, you're first look at morning markets and breaking news, we will be right back.
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>> nicole: breaking news this morning. start 2016 with a pwrutal selloff. we will tell you all about it. you have a shanghai composite halted at around 1:30 local time. it was down 7%. we are seeing all down arrows this morning. welcome back to lauren who had a beautiful baby girl. >> lauren: good morning, that selloff in asia slamming u.s. stock market futures. dow futures have been down 300 points, right now down 268. s&p down 30 and nasdaq 78 points. >> nicole: another big factor this morning not helping stocks, oil prices spiked after saudi arabia cut diplomatic ties to
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iran after protestors set fire to saudi embassy in tehran. let's check oil. we are still seeing up arrows for oil this morning. it's up about 30 cents. 37.34. >> lauren: president obama plans to use oval office powers. we will have the latest reaction for you. welcome, everybody, to fbn:am, first look at what's moving in today's markets, the latest breaking news and what to expect for your monday ahead. >> nicole: we are closely tracking stock market action. steep selloff in asia. right now stock market futures this morning looking with down arrows across the board. we saw the dow drop for the first time since 2008, over 2% and we are kicking off 2016 with down arrows. s&p down 30, nasdaq down 80.
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1.7% for the nasdaq. steep selloff. latest on the meltdown in asia. rachel live in beijing. >> good morning, worst start ever with shanghai composite falling 7%. but it could be a lot worse. now the latest data shows manufacturing activity in china contracted for the fifth straight month. it wasn't the news that investors were hope to go hear about the economy. the rest of the asian markets didn't like the news either. finished down more than 2 and a half percent. japan nikkei down 3% and kospi down 2%. this was not the way investors were hope to go start out the new year.
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>> nicole: tough start in asia. >> lauren: tough start for global action. a lot of the selling hitting. ftse and cac are down more than 2.2% right now. >> nicole: right now 37.37, tensions in the middle east. >> lauren: all of this is impacting the stock market today. joining us again, good morning, joe. what do you make of this selloff? >> it's a double wammy. everybody is trying to come back from a long break. i think they are taking money off the table pretty quickly after the rally in december.
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>> nicole: we saw some money going in to the yen and reportedly, right, the u.s. is supposed to be an area of growth for 2016, what do you think? >> yeah, i think people are looking at the u.s. as safe haven. paints a clearer picture of where we are. we will see money inflowing there. a lot of money in the merging markets and u.s. seems to be a good place to put it as well. >> lauren: thank you so much. a little bit of optimism. >> nicole: we are seeing a big jump in oil prices coming off saudi arabia announced it was cutting diplomatic ties with iran. demonstrators are angry over saudi arabia's execution of prominent gi clerk. candidates weighing in on this
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important issue. >> executing a shia clerk is going to erupt into more problems. >> i don't think it was a smart decision for them to make and i will criticize them publicly about that. >> nicole: clash between two regional rivals. state department spokesperson issued statement saying, quote, we will urge leaders to take affirmative steps to calm tensions. meanwhile saudi arabia is using the embassy attacks as an excuse to fuel these tensions. we are going to watch oil closely as this builds today. >> lauren: first full trading week of the year. investors have economic reports. that comes down on friday. today's round of data includes the survey of manufacturers, that's for december. index hit a six-year low in november. in december auto sales due
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tomorrow. americans went on a buying spree. so we will see if that enthusiasm continued in december. and then minutes from the federal reserve's december meetings on interest rates and we will get weekly claims on thursday and also the challenger job report and that sets the stage for friday's job report for the month of december. economists looking for the economy to create 200,000 jobs, unemployment to stay steady at 5%. >> nicole: here is a headlines from today's edition of the wall street journal. hollywood banner year. star wars, mega hits pushing total ticket sales to record in 2015, many films struggle to find an audience. china's tech center faces
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tougher flooding. tighten spending an consumer merging with rivals. tesla delivered 17,400 vehicles in the last three months of 2015, the most in a quarter by wide margin and 75% by more than a year earlier, so they're getting those out there, tesla the best they can. >> lauren: coming up in plunge in chinese stock market futures and u.s. market futures. dow down 261 points. we will have complete coverage of the market action for you. you're watching fbn:am, first look at morning markets and breaking news this monday morning january 4th. we live in a pick and choose world.
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>> nicole: you're watching fbn:am, there's a big selloff under way on global market actions. we saw shanghai composite almost down 7%. we are seeing stocks lower in europe. >> lauren: 10,359 right now. decline of 3 and a half percent. ftse and a cac are each down more than 2%. it's ugly on first trading day of 2016. mick nick miners weak. here at home we are kicking it down with down arrows. s&p futures down 30 and nasdaq the worse of the bunch, down 1.7% this morning.
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>> lauren: i have up arrows for you, it's in commodities. $1,072. >> nicole: we are going to take a closer look at what to expect on the trading day. joining us this morning. we are seeing the selloff in asia on the heels of economic data. so what do we expect for this week ahead, what are you telling the clients? >> i'm basically telling my clients that maybe they should stay home. it's a situation where the market went into taking markets. the market was supposed to have quiet weakness, this could be a breath of fresh air. my call for that number 195,000, private payrolls 187. i'm thinking we can see a down
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4.9%. the key is that we could see wage numbers souring. people came to work, the market was basically saying hopefully we will have a breather until friday morning. but as you said, all of a sudden we had a total disaster in asia with very economic data. i think one of the things, excuse me, that we are seeing here, of course, as we saw over the weekend with tehran and saudi arabia, eliminating any negotiations, therefore the only thing is gold about $10. it's really a situation where we thought we had some problems with 2016. all of a sudden they have been emphasized on the first day of
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2016. >> lauren: what are some fresh drivers for the stock markets, in addition to that refreshing wage growth that you are hoping for? >> i don't think anybody was expecting much out of 2016, probably having marginal improvements and pick your stocks. again, in the euro zone any stocks, healthcare, et cetera, et cetera, nobody is going to be looking at miners, commodity related. it's a situation right now where right or wrong we saw it in 2015, it looks like it'll be safe haven. most people that i've talked, thank you very much, i had a great run with the stock market and i will just sit back and wait for payrolls on friday. >> nicole: we will see. we are seeing a pretty big sell
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off and we will see whether or not they can take them at these lower levels. thanks bill hubard. we want to show you a few pictures of new addition to the lauren simonetti family. there's ray vivian. that's the reason she was out. a beautiful baby girl. >> lauren: he took that picture right there. he had just come home from work. vivian is three months tomorrow. people say you get bored on maternity leave. i didn't get bored. [laughter] >> lauren: going to harvard. coming up everybody we will run global action before we turn it over to mornings with maria. stay with us.
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>> nicole: big selloff is under way. we are kicking off 2016 with all down arrows. shanghai composite down nearly 7%. we are seeing the nikkei down about 3%, down arrows there. down arrows in europe right now. 2% selloff. dax the worst of the bunch. u.s. stock market futures down about 263 points right now and s&p futures down almost 30. we had weak numbers out of china manufacturing numbers. tensions in the middle east from saudi arabia and iran. that's one of the reasons why you are seeing oil slightly higher. first trading day of 2016 where the dow last year for the first time since 2008. we say good morning to sandra smith. mornings with maria start right now. >> sandra: we have a market sell tao*uf start off 2016. i'm sandra smith, maria
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bartiromo has the morning off. it is monday january 4th, with me fox business dagen mcdowell and keith mccullough. ugly day on wall street and around the world. it started off in asia, shanghai composite dropping 7%. major averages down at least 2% on the day and it's having an impact on other markets as well. in europe we are seeing sharp declines. you are looking at the ftse, dax in germany down more than 3%. we look towards the opening bell in the u.s. it is certainly shaping up to be a big selloff on the open. we are going to get a good look at the help of the economy this week. there's a lot of data on the calendar including the december
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job's report. it will be coming out on friday. political tensions playing. saudi arabia cutting ties with iran. crude prices spike on the news overnight and have come down of their highs. oil is 37.41. up 1% on the session. gold prices are right now up more than 1%, $12 in early trading. keith, big selloff expected. you said right away, did you see the selloff in germany, dax more than 3%. selloff had to be halted in china. >> keith: casino in china is what it is. people that didn't pay attention to the data last week missed a

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